EUR/USD Tests Resistance At 1.0885

Key Insights

• EUR/USD remains under significant pressure as markets expect little progress in the third round of negotiations between Russia and Ukraine, which is set to begin today. 
• High natural gas prices and fears about the potential economic crisis in Europe put additional pressure on euro. 
• However, EUR/USD is trying to gain some ground after early losses. 

Euro Tries To Recover After Early Sell-Off

EUR/USD is currently trying to settle above the resistance at 1.0885, while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is moving towards the resistance at the 99 level. A successful test of this level will open the way to the test of the resistance at 99.20, which will be bearish for EUR/USD.

There are no important economic reports scheduled to be released in the U.S. and EU today, and foreign exchange market traders will focus on geopolitical developments and general market sentiment.

The third round of negotiations between Russia and Ukraine is scheduled to start today, but markets do not expect any breakthroughs. Gold has already tested the $2,000 level, while Brent oil made an attempt to settle above $138. In this environment, safe-haven assets like the U.S. dollar may get more support.

Technical Analysis

EUR/USD is testing the resistance level at 1.0885. In case this test is successful, EUR/USD will move towards the next resistance level, which is located at 1.0900.

A move above the resistance at 1.0900 will open the way to the test of the resistance at 1.0930. If EUR/USD manages to settle above this level, it will head towards the next resistance at 1.0965.

On the support side, the nearest support level for EUR/USD is located at 1.0865. If EUR/USD declines below this level, it will head towards the next support at 1.0840. A successful test of the support at 1.0840 will push EUR/USD towards the support at 1.0820.

For a look at all of today’s economic events, check out our economic calendar.